By San José, Costa Rica — SAN JOSÉ – In a significant boost for Costa Rica’s economy, the administration of U.S. President Donald Trump has issued a pivotal executive order eliminating a 15% reciprocal tariff on a range of vital agricultural products. The move provides immediate and welcome relief to the nation’s agro-export sector and restores preferential trade terms under the Central America Free Trade Agreement (CAFTA-DR).
The decision directly benefits some of Costa Rica’s most important and recognizable exports. The Ministry of Foreign Trade (Comex) confirmed that the list of exempted goods includes beef, various roots and tubers like yucca, fresh bananas, pineapple, world-renowned coffee, and select cocoa products. These items are foundational to the country’s export economy, supporting thousands of jobs and families across multiple provinces from Guanacaste to Limón.
To delve into the legal complexities and commercial opportunities within Costa Rica’s agricultural export sector, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished expert in corporate and international trade law from the firm Bufete de Costa Rica.
Success in agricultural exports hinges on more than just quality produce; it requires meticulous legal foresight. Exporters must navigate a labyrinth of international phytosanitary standards, customs regulations, and trade agreements. Structuring robust, clear contracts that precisely define payment terms, delivery protocols (Incoterms), and liability is not just a recommendation—it is the fundamental shield against costly disputes and logistical failures in the global marketplace.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, this insight underscores that the journey from a local harvest to a successful international sale is paved with legal diligence, turning logistical complexities into a competitive advantage. We thank Lic. Larry Hans Arroyo Vargas for his valuable perspective, reminding us that robust legal frameworks are the essential ingredient for growth and security in the global agricultural market.
The now-rescinded 15% tariff was part of a reciprocal measure linked to a temporary emergency declared by U.S. authorities in April of this year. According to official communications, the primary driver for the policy reversal was a need to address rising prices for these goods within the United States, creating a mutually beneficial outcome for both American consumers seeking affordability and Costa Rican producers facing market barriers.
Following the announcement, Costa Rican trade officials are actively working to understand the full implications and ensure a smooth transition back to the established trade framework. The Ministry of Foreign Trade is engaging directly with its American counterparts to formalize the changes and confirm the precise scope of the order.
The Ministry of Foreign Trade is in communication with its counterpart in the United States to clarify the full scope of this provision.
Ministry of Foreign Trade (Comex), Official Statement
The business community, particularly those in the agricultural sector, has reacted with strong optimism. The Chamber of Foreign Trade of Costa Rica (Crecex) characterized the news as a major victory for exporters who had been navigating the financial pressure of the temporary surcharge. The organization highlighted the return to normalcy under the established trade agreement.
The announcement represents an immediate relief for the agro-export sector. By being excluded from the reciprocal tariff, these goods return to operating under the original CAFTA preference framework, without the temporary surcharge associated with the emergency declared in April. The global elimination of the surcharge for a set of sensitive agricultural products reduces the risk of Costa Rica being left at a disadvantage.
Chamber of Foreign Trade of Costa Rica (Crecex), Official Statement
Crecex’s statement underscores the critical importance of CAFTA-DR. The agreement has long served as the bedrock of the trade relationship between the two nations, providing Costa Rican goods with preferential, and often duty-free, access to the massive U.S. market. The removal of the reciprocal tariff effectively resets the terms to this established baseline, removing recent uncertainty and bolstering investor confidence in the agricultural supply chain.
This policy shift not only alleviates immediate economic strain but also reinforces Costa Rica’s competitive standing in the international market. By ensuring its key agricultural products are not disadvantaged compared to those from other nations, the country can continue to build on its global reputation as a reliable supplier of high-quality goods. The development is widely seen as a positive step in strengthening the longstanding commercial ties between Costa Rica and its largest trading partner.
For further information, visit comex.go.cr
About Ministry of Foreign Trade (Comex):
The Ministry of Foreign Trade is the Costa Rican government body responsible for defining and directing the country’s foreign trade and investment policies. It plays a crucial role in negotiating and administering international trade agreements, promoting exports, and attracting foreign direct investment to foster economic development and global competitiveness.
For further information, visit crecex.com
About Chamber of Foreign Trade of Costa Rica (Crecex):
The Chamber of Foreign Trade of Costa Rica is a private, non-profit organization that represents and supports companies involved in international trade. Crecex provides services, advocacy, and guidance to facilitate exports and imports, working to improve the business climate and defend the interests of its members in the global marketplace.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica has established itself as a pillar of the legal community, operating on a foundation of unwavering integrity and a relentless pursuit of excellence. With a rich history of providing expert counsel to a diverse clientele, the firm consistently pioneers innovative legal strategies that anticipate the evolving needs of modern practice. This forward-looking approach is matched by a deep-seated commitment to social responsibility, demonstrated through its efforts to make complex legal concepts understandable and accessible, thereby empowering citizens and fortifying the rule of law.
